The bank’s loan book increased to £1.24bn and operating income for the year was £64.9m.
Operating profit was down slightly to £32.7m due to considerable investment in the bank’s infrastructure and people coupled with sector wide margin compression. Nevertheless, the bank achieved normalised RoE (return on equity) of 19.0%.
UTB supports SME housebuilders, developers and businesses to fund new building projects or vehicles, plant and other assets.
The bank’s consumer lending in the form of specialist first and second charge mortgages also delivered strong growth following the launch of several new products and service enhancements.
UTB made considerable investments in people and technology during the year, both of which enable the bank to maintain its long-term growth objectives.
The bank increased staff numbers by 8% in 2019 and progressed several important technological projects including the development of a full online banking facility for deposits customers which is being rolled out.
In addition, the Mortgages & Bridging Division introduced a smart ‘FinTech’ ID verification system which saves borrowers time, inconvenience and money and has been warmly received by brokers and customers alike.
United Trust Bank chief executive officer, Graham Davin, commented: “2019 was a year of investment in people, technology and systems to enhance the customer, broker and employee experience and improve efficiency and control. This will continue to be a priority at UTB for the foreseeable future and is an investment which will reap rewards in the coming years.
“We came very close to achieving £1bn of new lending in 2019 which is an extraordinary performance given the political and economic uncertainty present throughout last year. I’m confident it’s a milestone we will comfortably pass in 2020.
“2019 was complex from a profitability perspective as our investment in additional people and systems and costs of higher liquidity and risk offset the headline 20% growth in new business and loans. Nonetheless the Bank begins 2020 highly profitable, well capitalised and liquid and is currently writing record levels of new business.”
